RICHARDSON, Texas, (June 15, 2017) – RealPage, Inc. (NASDAQ: RP), a leading global provider of software and data analytics to the real estate industry, announced today that Canadian client Vertica Resident Services has documented a revenue outperformance in excess of 2% at its apartment properties piloting RealPage’s YieldStar revenue management solution.
“Despite the fact that we ran the pilot through the slow winter months, the properties using YieldStar consistently outperformed by up to 4% in rental revenue relative to the control group during the eight-month evaluation period,” said Junichi Murahashi, Asset Manager at Vertica. “In a business where you fight for every percentage point, that’s really meaningful.”
Long used in the airline, hotel, car rental and other industries, revenue management software allows property managers to calculate ideal rent pricing by automatically weighing supply and demand for various unit types, competitor pricing, upcoming lease expirations, turnover cost, seasonality and other criteria. “There’s no way a human being can weigh all these factors to come up with the perfect rent to charge for every unit, every day,” said RealPage’s Industry Principal, Thomas Mattera. “YieldStar gives our clients confidence they’re not undercharging and leaving money on the table or overcharging and losing leases to their competitors – the same confidence airlines have long had when pricing seats on their planes.”
Vertica’s Murahashi said that, in addition to directly boosting revenue, YieldStar delivers another important benefit. “YieldStar allows leasing agents to offer flexible lease terms and pricing, with the calculation engine ensuring that all the options are equally profitable for the property. There’s no need for guesswork or concessions.”
Vertica has traditionally looked to the U.S. multifamily market for clues about technologies that might give them an edge. “Canada tends to follow a bit behind the U.S. in technology trends, so we watch what property management leaders are doing below the border to stay competitive,” said Murahashi. “We had noticed that the more sophisticated property managers have been achieving consistent success with revenue management.”
“We’ve been happy with the outperformance demonstrated by YieldStar to this date and how RealPage patiently worked with us to accommodate our needs,” Murahashi said. “Their commitment to the Canadian market was also a big factor in our choosing them.”
For more information about YieldStar, please visit www.realpage.com/yieldstar/.
RealPage is a leading global provider of software and data analytics to the real estate industry. Clients use its platform to improve operating performance and increase capital returns. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 11,200 clients worldwide from offices in North America, Europe and Asia. For more information about the company, visit https://www.realpage.com.
About Vertica Resident Services
A wholly-owned subsidiary of GWL Realty Advisors, Vertica Resident Services is a multi-residential property management company with an award-winning collection of rental apartment communities in cities across Canada. For more information about the company, visit https://vertica.ca.